Causal Relationship among Stock Markets and Economic Growth in Latin America
Journal Title: International Journal of Financial Markets - Year 2014, Vol 1, Issue 4
Abstract
The aim of this research is to analyze the causal relationship among stock market and economic growth in Latin America, in the case of Mexico, Brazil and Chile. The Granger causality test was utilized in order to analyze the relationship among growth rate and the stock market index of each country, as a reference of economic growth respectively. Consequently a VAR model for each country is designed. The results of research allow to identify unilateral causation in all three cases examined, as well allows to identify that there is causality of stock market toward economic growth.
Authors and Affiliations
Elena Moreno-García, Arturo García-Santillán, Sergio Hernández-Mejía, Jorge Muñoz-Buendía, Daniel Basurto-Romero
Keywords
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- EP ID EP28708
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